Iowa Loans laws & HR compliance analysis

Iowa Loans: What you need to know

Iowa law provides that an employer may deduct loan repayments from an employee's wages if the employee has given written authorization for the deduction (IA Code Sec. 91A.5). Therefore, before making a wage advance or loan to an employee, an employer should have the employee agree in writing to a specific, realistic repayment schedule and give written authorization to deduct loan payments from his or her wages.
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Last reviewed on November 25, 2017.

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